Markets Update 27/10/2023

Market Overview | Markets Update 27/10/2023

Good morning, it’s Friday, October 27th, and we’re here with your daily financial markets update from TradexSys.com. Yesterday, the American financial markets faced significant challenges as major indices recorded notable declines. The Nasdaq registered a 1.90% drop, the Dow Jones reported a 0.76% decrease, and the S&P experienced a 1.18% decline. This extends the negative trend of the week, with the technology index losing approximately 4.50% to date.

Market Corrections

Both the Nasdaq and the S&P have entered correction territory, with the Nasdaq down about 12% from its July peaks, while the S&P has decreased by 8%. The Russell, since its peak in February, has even suffered a substantial 17.4% loss. So, at least for October, the year is concluding on a negative note.

Investor Sentiment

Despite positive data on American GDP growth, which exceeded expectations at 4.9%, and robust quarterly reports from companies like T-Mobile, ServiceNow, and Meta, investor confidence remains shaky. Concerns about ongoing high costs associated with virtual reality led to a 3.8% decline in Meta’s stock, and the outlook for Meta’s next quarter disappointed with expectations of weaker advertising demand.

Global Market Insights

Today, Asian markets rebounded, with the Hang Seng surging by 2.8%, and the Japanese Nikkei index rising by 1.27%. In contrast, European markets remained relatively stable. The ten-year Treasury yield stabilized at around 4.85%-4.90% after recent market volatility.

Currency and Commodity Update

The euro lost ground against the dollar in recent days, settling around 1.05-1.05.50 due to the stronger dollar. Oil prices remained steady at around $85 per barrel.

Cryptocurrency Trends

This week witnessed price hikes in Bitcoin and Ethereum, with Bitcoin surpassing $28,000. Morning futures indicate a positive trend, and the Nasdaq is striving to recover from recent losses, driven by Amazon’s exceptional quarterly results, which exceeded analyst expectations with a 26% increase in revenue.

Quarterly Reports and Market Movers

ServiceNow also reported strong quarterly results. Intel pleasantly surprised with profits and sales surpassing analyst expectations, resulting in a 7% boost in its stock price during pre-market trading. Conversely, strikes disrupted auto production at Ford. However, it appears that an agreement has been reached, and the strikes have come to an end.

Looking Ahead

Today, we await signs of the markets emerging from the correction phase, particularly the Nasdaq. We hope that this Friday will usher in a rebound, spurred by positive quarterly reports. Join us again on Monday for the next update.